Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to offer minimum essential coverage to at least what percentage of its full-time employees?

Answer options:

50%

75%

95%

100%

How to approach this question

Memorize the ACA 'substantially all' threshold: 95%.

Full Answer

C.95%✓ Correct

To avoid the Employer Shared Responsibility Payment (Penalty A), an ALE must offer minimum essential coverage to at least 95% of its full-time employees (and their dependents).

Common mistakes

Guessing 100% or 50%.

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